Which of the Following Statements Is Correct

question 17

Multiple Choice

Which of the following statements is correct?

• A) A hostile takeover is a primary method of transferring ownership interest in a corporation.
• B) The corporation is a legal entity created by the state and is a direct extension of the legal status of its owners and managers,that is,the owners and managers are the corporation.
• C) Unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization.
• D) In part due to limited liability and ease of ownership transfer,corporations have less trouble raising money in financial markets than other organizational forms.
• E) Although stockholders of the corporation are insulated by limited legal liability,the legal status of the corporation does not protect the firm's managers in the same way.

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Definitions:

Literary Work

A work of fiction or nonfiction, published or unpublished, that exists in written or printed form, or in electronic media.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the loss of value due to wear and tear, and obsolescence.

Plant Asset

Permanent real assets employed for creating products and offering services, like facilities, mechanical devices, and apparatus.

Market Value

The immediate cost set for assets or services to be exchanged in a market setting.